By Nick Adley On Mar 29, 2021
Regulation of cryptocurrencies is one of the most complex issues facing the crypto world. And it is that, for many years, governments around the planet have been reluctant to recognize cryptocurrencies as real money with exchange value. However, this seems to be changing little by little, as more governments and regulatory agencies are open to recognizing the value of virtual currencies. The best example of this being that Texas could recognize Bitcoin as a currency.
The regulatory problem
It is impossible to minimize the damage that the lack of a strong regulatory framework causes to the cryptoassets ecosystem. Well, although more and more people around the world acquire and use Bitcoin or other cryptocurrencies as a method of payment and savings. The fact that they are not recognized by law, leaves crypto users in a situation of total defenselessness.
Thus, despite how convenient they may be, cryptocurrencies are banned in many countries, or they face such legal uncertainty that companies and citizens are not willing to use them. Fearing the possible legal consequences that this may have, or the lack of protection that the state can provide when doing business with Bitcoin and other currencies.
For this reason, the advances that the main governments of the world are slowly making are important. Which are opening the doors not only to the emergence of a greater number of crypto companies. Even allowing them to go public legally as is the case with Coinbase. If not in addition to the use of Bitcoin and cryptocurrencies as current money, this being the case of Texas and its new law.
Texas could be Bitcoin territory
This is so thanks to Bill 4474 introduced by Tan Parker, a member of the Texas House of Representatives. It proposes to include the rights of buyers who obtain control of the virtual currency for the purposes of the Uniform Commercial Code.
If this law is passed, Texas could recognize Bitcoin as a legal tender under its own regulatory framework. Qualifying cryptocurrencies as a digital representation of value that functions as a medium of exchange, unit of account or store of value.
This would not only be providing legal protection to the inhabitants of Texas and state companies that decide to carry out operations with Bitcoin, but also with any other virtual currency. Thus expanding the possibilities for crypto trading within the United States, and creating an incentive to carry out operations with crypto assets in the state. Becoming Texas, if the reform is finally approved and implemented by September 1, the second state after Wyoming to recognize the legality of virtual currencies.
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